P5 - Identify the information systems used in a specified organisation
Types of information systems
Transaction Processing system - transaction processing system are operated directly by the workers at Tesco. This then provides key data which is required to support the management operations. For example, Tesco will use this at their checkouts to track how many items they have and inform other members of staff when items need to be restocked; it will also be used at their checkouts for payments and funds transfers when customers buy something.
Management Information systems (MIS) – MIS are used by the middle managers to help ensure the smooth running of the organisation in the short to medium term. These systems then allow the managers of Tesco to evaluate their performance. Functions of MIS that Tesco will include internal transactions, internal files, and structured data as inputs to the systems. Processing functions include sorting, merging and summarising. And lastly the output will be summary reports, action reports and detailed reports.
These systems may be used to compare the performance of the business to previous months or to their competitors such as Asda and Morrison’s. These systems can also help decision making with the managers as they can look at reports.
Decision Support systems - Decision Support Systems are used by Tesco’s senior managers which simplifies the creation of knowledge and integration of the information. These systems are used to analyse Tesco’s information and allows managers to see the effects of their decisions into the future and they can be used to solve issues that Tesco may be facing. Inputs of DSS include internal transactions and internal files. Modelling, simulation, analysis and summarising are involved with the processing of DSS. Lastly, summary reports, forecasts and graphs and plots are the outputs of the system.
Executive information systems - Executive information systems help executives and senior managers analyse the environment in which Tesco operates in to identify trends and to plan for these trends. For example, at Christmas, Tesco have an increased in sales and therefore will need to plan to ensure they don’t run out of stock and have enough staff available to compete with the demands. Input functions of EIS include external data, internal files and pre-defined models. Processing of EIS includes summarising, simulation and ‘drilling down’.